The post Ethereum Holds $2400 as Whale Accumulation Surges: Is a Bullish Breakout Imminent? appeared first on Coinpedia Fintech News
The Ethereum (ETH) price is navigating within a tight range near $2450, struggling to break out decisively as traders await clarity from both macro events and technical events. The second-largest crypto has bounced between $2400 and $2460 over the past 24 hours, reflecting indecision despite bullish whale activity and growing institutional interest. Alongside, the whales have also intensified the accumulation of Ethereum, which can be considered a bullish signal for the token.
As per the data from Cryptoquant, Ethereum whales have recorded one of the highest accumulations ever in the cycle. On the other hand, the active address spiked instantly from 289,275 to as high as 515,432, hinting towards a massive rise in the traders’ activity. Hence, with a rise in the volatility, the ETH price could also attract a positive impact.
Is a Short Squeeze Incoming?
A short squeeze occurs when the traders who have shorted the token are compelled to buy back at a higher price. This covers their losses and also helps the price climb instantly. The current on-chain readings suggest an enormous amount of shorts have been accumulated, which could pave the way for a sudden rise in the price soon.
The chart shows a huge accumulation of shorts in the past few days as the price was about to secure the resistance at $2800. This quickly drives the price lower, and now that it is trying to recover, the shorts are feared to get liquidated. A significant amount of liquidity has been piled up around $2500, and hence, a rise above the level could eventually squash the shorts.
Will the Ethereum (ETH) Price Reach $3000?
The Ethereum price has been trading within a narrow range while plunging heavily during the latest pullback. Despite this, the price has held along a strong support, hence paving the way to reach the resistance. Besides, the volume has also been making moves, hinting towards a substantial rise in the volatility as well.
As seen in the above chart, the price has rebounded from the support of the Gaussian channel, which suggests excessive price drain. However, the CMF remains stuck below ‘0,’ hinting towards a drop in the money flow onto the platform. Therefore, the Ethereum price is believed to reach $2500, and if the market conditions are favorable, then a rise above $2800 is imminent. Otherwise, the price may continue to consolidate below the price range.